8-KOther Events

T-Mobile US, Inc. 8-K Report, Corporate Update (Sep 25, 2023)

Filed September 25, 2023For Securities:TMUSTMUSZTMUSITMUSL

Summary

T-Mobile US, Inc. (TMUS) announced on September 25, 2023, that its Board of Directors declared a quarterly cash dividend of $0.65 per share. This marks the first dividend payment following the approval of a substantial shareholder return program valued at up to $19.0 billion, which is set to run through December 31, 2024, and includes both share repurchases and dividends. Investors can expect T-Mobile to pay approximately $3.0 billion in dividends throughout 2024, distributed quarterly, with an anticipated annual growth rate of around 10% per share. The declaration of this dividend also triggers a downward adjustment to the threshold price for the potential issuance of additional shares to SoftBank Group Corp. under a prior agreement, specifically to $149.35 as of the declaration date.

Key Highlights

  • 1Declaration of a $0.65 per share cash dividend, payable on December 15, 2023, to shareholders of record on December 1, 2023.
  • 2This is the first dividend declared under T-Mobile's previously announced shareholder return program of up to $19.0 billion through December 31, 2024.
  • 3The shareholder return program includes both cash dividends and share repurchases.
  • 4T-Mobile plans to pay approximately $3.0 billion in dividends in 2024, distributed quarterly.
  • 5Dividend per share is expected to grow by approximately 10% annually.
  • 6The declaration of this dividend has adjusted the threshold price for SoftBank's potential share issuance under a February 2020 Letter Agreement to $149.35.
  • 7Future dividend declarations will further adjust this threshold price.

Frequently Asked Questions

The dividend of $0.65 per share is payable on December 15, 2023, to shareholders who are on record as of the close of business on December 1, 2023.

T-Mobile has a shareholder return program of up to $19.0 billion, which is expected to be executed through December 31, 2024. This program includes both cash dividends and share repurchases.

The declaration of the $0.65 per share dividend has reduced the threshold price at which T-Mobile would issue additional shares to SoftBank under their February 2020 Letter Agreement. As of the declaration date, this threshold price has been adjusted downwards to $149.35. This adjustment will also occur with future dividend declarations.

T-Mobile expects the dividend amount paid per share to grow by approximately 10% annually, as part of their commitment to returning capital to shareholders.